Explainer: Insurance company told to settle claims for 2023-24 rabi crop losses

Farmers, who had suffered crop loss during the Rabi season in 2023-24, are set to get insurance claims to the tune of Rs 85.5 crore after the Centre’s Technical Advisory Committee (CTAC) rejected the insurance firm’s appeal against the payment of the claims. The farmers of three districts — Bhiwani, Charkhi Dadri and Nuh — will benefit from the CTAC’s decision.

What was the dispute around 2023–24 crop insurance claims?

The dispute arose over Crop Cutting Experiments (CCEs) conducted in Bhiwani, Charkhi Dadri and Nuh districts under the Pradhan Mantri Fasal Bima Yojana (PMFBY). Insurance company Kshema General Insurance alleged that its objections regarding 148 Insurance Units (IUs) in Bhiwani, 45 IUs in Charkhi Dadri and 38 IUs in Nuh were ignored, and that yield assessments were made only on the reports of the Deputy Directors of Agriculture without independent validation.

What was the final decision of the Central Technical Advisory Committee (CTAC)?

The CTAC dismissed the insurance firm’s appeal and upheld the STAC’s decision. It concluded that the firm has failed to rebut the state’s findings, delayed its appeal and produced inadequate evidence. The insurance company was directed to settle claims as per the actual yield data provided by the state government within seven days of the order.

How much compensation will farmers get now?

According to former Haryana Agriculture Minister JP Dalal, around Rs 85.5 crore will be disbursed among farmers in Bhiwani, Charkhi Dadri and Nuh districts. Of this, about Rs 64.54 crore is earmarked for Loharu farmers in Bhiwani district and Rs 7.33 crore for farmers in Charkhi Dadri.

How did the case reach the Central committee?

After the STAC of Haryana rejected the insurer’s objections in its meeting on December 27, 2024, and reaffirmed the decision in January 2025, the company appealed before CTAC on March 3, 2025.

What were the claims of the insurance company before the committee?

The firm claimed that CCEs were not carried out as per standard protocol and it had evidence through images and technical analysis by empanelled agencies to prove irregularities. It also argued that many objections raised before the STAC were dismissed without valid grounds.

What was the state government’s stand on the issue?

The state government countered that the insurance firm had co-witnessed almost all disputed CCEs — except four IUs in Charkhi Dadri and 23 CCEs in Bhiwani where it did not sign forms. It stressed that objections were not raised during the CCE process, but only after yield data was reported. Further, no technical report was submitted at the stage of the District-Level Monitoring Committee (DLMC) or STAC.

How did the Central Technical Advisory Committee handle the appeal?

In its first hearing on June 26, 2025, the CTAC considered the admissibility of the appeal, since the state government objected that it was filed after the 15-day period. The CTAC advised that such conditions should be incorporated in future MoUs, but decided to proceed with hearing the case on merits. On August 4, 2025, the CTAC reviewed the matter in detail.

What were the main observations of Central committee?

The CTAC observed serious deficiencies in the appeal by the insurance firm, stating that it lacked in factual basis, technical reports and corroborative evidence. The belated technical analysis submitted did not comprehensively cover disputed IUs and admitted that models could not fully capture localised yield losses.

What assurance has been given to farmers?

Former Agriculture Minister JP Dalal has assured that he would take up the matter with the Chief Minister to ensure that the farmers get their claims as soon as possible. He has stated the state government stands firmly with farmers’ interests.